NEW YORK & SAN DIEGO--(BUSINESS WIRE)--Bexil Corporation (BXLC) announced today that its majority owned subsidiary, Bexil American Mortgage Inc., has signed a stock purchase agreement under which it would acquire 90% of the equity in a small mortgage bank, and obtain an option to acquire the remaining 10% in the future. Although in connection with the acquisition, both Bexil and Boulderado Group expect to provide additional capital to Bexil American Mortgage, financial terms were not disclosed. If it occurs, the closing of the stock purchase agreement, which is subject to customary closing and other conditions, would normally be announced in the first quarter of 2013. It is anticipated that the acquisition may provide Bexil American Mortgage with potentially a broader product offering and certain operational efficiencies.
Bexil is a holding company engaged through subsidiaries in investment management, securities trading, and mortgage banking. Bexil subsidiary Bexil Advisers LLC is investment manager to Dividend and Income Fund, a closed end fund (NYSE: DNI) (NAV: XDNIX). Bexil American Mortgage Inc., a new mortgage subsidiary of Bexil, is engaged in the mortgage banking business including, but not limited to origination, production, and sales into the secondary market. To learn more about Bexil, including Rule 15c2-11 information, please visit www.bexil.com. Certain affiliates of Bexil are engaged in stock market and gold investing through investment management of equity and gold mutual funds and closed end funds.
Boulderado Group, LLC
Boulderado Group is a Boston based investment partnership founded in 2007 by its managing member, Alex B. Rozek. The partnership invests in businesses and securities across a variety of asset classes whenever it determines that the price represents a significant discount to intrinsic value.
Safe Harbor Note
This release contains certain “forward looking statements” made pursuant to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These statements involve known and unknown risks, uncertainties and other factors, many of which are beyond the control of Bexil Corporation, which may cause the company’s actual results to be materially different from those expressed or implied by such statements. The forward looking statements made herein are only made as of the date of this release, and the company undertakes no obligation to publicly update such forward looking statements to reflect subsequent events or circumstances.